Dutch International: Euro faces further downside risk against the US dollar.

Francesco Pesole of the Netherlands International Group stated in a report that as the market seems to have raised the threshold for trading based on positive news from the Middle East, the euro fell to a near six-week low against the US dollar and faces further declines. Although the risk of sudden selling of the euro has been well controlled due to a more balanced position, the macro environment has "clearly weakened support" for the currency. He said that market expectations for a rate hike by the Federal Reserve have reversed the trend of narrowing yield differentials between the US and the eurozone, which had previously provided a cushion for the euro during the energy crisis. The euro fell by 0.2% to a low of 1.1583 dollars. "The next support level worth watching is 1.1570," Pesole said.